The GEO Group Comments on Favorable Ruling by En Banc Panel of U.S. Court of Appeals for the Ninth Circuit Against California’s AB32 Law

Rhea-AI Summary

The GEO Group (NYSE: GEO) announced a favorable ruling by the U.S. Court of Appeals for the Ninth Circuit regarding Assembly Bill 32 (AB32), which aimed to prohibit private contractors from operating detention facilities in California. On September 26, 2022, the En Banc Court vacated a previous district court decision, allowing federal immigration processing centers to continue operations. GEO's Executive Chairman expressed satisfaction with the ruling, which supports their contracts with the U.S. Department of Homeland Security.

Positive

• Favorable ruling by the U.S. Court of Appeals for the Ninth Circuit allows GEO to continue operations related to federal immigration processing centers in California.
• The En Banc Court's decision protects GEO's civil detention support services contracts with the U.S. Department of Homeland Security.

Negative

• None.

BOCA RATON, Fla.--(BUSINESS WIRE)-- The GEO Group (NYSE: GEO) (“GEO”) commented today on the favorable ruling by an en banc panel of the U.S. Court of Appeals for the Ninth Circuit (the “En Banc Court”) in relation to lawsuits filed by GEO and the United States for declaratory and injunctive relief challenging California’s enacted law, Assembly Bill 32 (“AB32”), which would have prohibited the operation of detention facilities in the state of California by private contractors, including contracted federal immigration processing centers.

On September 26, 2022, in an 8-3 decision, the En Banc Court vacated a prior U.S. District Court decision denying the requests by GEO and the United States for declaratory and injunctive relief barring application of the California law to federal immigration processing centers. The En Banc Court ruled that AB32 would give California a virtual power of review over detention decisions made by U.S. Immigration and Customs Enforcement (“ICE”), in violation of the Supremacy Clause. The En Banc Court held that whether analyzed under intergovernmental immunity or preemption, California cannot exert such control over the federal government’s detention operations. The case is remanded to the U.S. District Court for further proceedings, consistent with the En Banc Court ruling.

Commenting on the ruling, GEO’s Executive Chairman, George C. Zoley, said, “We are pleased with this ruling by the en banc panel of the U.S. Ninth Circuit Court of Appeals, allowing the continuation of our California civil detention support services contracts for the U.S. Department of Homeland Security.”

About The GEO Group
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 102 facilities totaling approximately 82,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Use of forward-looking statements
This news release may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date of this news release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements, including statements regarding the favorable ruling, on September 26, 2022, by the En Banc Court in relation to lawsuits filed by GEO and the United States for declaratory and injunctive relief challenging AB32. Risks and uncertainties that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to any future judgments or orders that are adverse to the ruling by the Ninth Circuit Court of Appeals on AB32 and other risk factors contained in GEO’s filings with the U.S. Securities and Exchange Commission, including its Form 10-K, 10-Q and 8-K reports. GEO disclaims any obligation to update or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220926005819/en/

Pablo E. Paez (866) 301 4436

Executive Vice President, Corporate Relations

Source: The GEO Group, Inc.

FAQ

What was the ruling by the U.S. Court of Appeals for the Ninth Circuit regarding GEO?

The ruling, issued on September 26, 2022, vacated a prior decision and allowed GEO to continue operating federal immigration processing centers in California.

How does the ruling affect GEO's contracts in California?

The ruling supports GEO's civil detention support services contracts for the U.S. Department of Homeland Security by allowing operations to continue.

What is Assembly Bill 32 and how does it relate to GEO?

Assembly Bill 32 aimed to prohibit private contractors from operating detention facilities in California, which was challenged by GEO in court.

What was the significance of the En Banc Court's ruling for GEO's federal operations?

The ruling affirmed that California cannot exert control over federal detention operations, ensuring the continuation of GEO's federal contracts.